The Internal Revenue Service (IRS) issued Notice 2017-17 requesting comments on a proposed revenue procedure that would provide procedures by which a taxpayer may request consent to change a method of accounting for recognizing income when the change is made for the same taxable year for which the taxpayer adopts the new financial accounting revenue recognition standards and the change is made as a result of, or directly related to, the adoption of the new revenue recognition standards (a qualifying same-year method change).
On May 28, 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standard Board (IASB) jointly announced new financial accounting standards for recognizing revenue. The new standards are effective for publicly-traded entities, certain not-for-profit entities, and certain employee benefit plans for annual reporting periods beginning after December 15, 2017.
The Treasury Department and the IRS acknowledge that adoption of the new standards may create or increase differences between financial accounting and tax accounting rules.
Comments are requested on:
- Issues of conformity between the new standards and the Code and Regulations
- Procedures for Method Changes
Comments are due July 24, 2017.
Notice 2017-17 will be published in Internal Revenue Bulletin 2017-15, dated April 10, 2017.